Coronavirus is hitting global automotive and steel companies

Reported by Luke 2020-3-31

Since the outbreak of COVID-19 in February, it has severely affected the global automotive industry, leading to a decline in international demand for steel and petrochemical products.

According to S&P Global Platts, Japan and South Korea have temporarily closed production of Toyota and Hyundai, and the Indian government has severely restricted 21-day passenger flow, which will curb demand for cars.

At the same time, auto factories in Europe and the United States have also stopped production on a large scale, including more than a dozen multinational auto companies including Daimler, Ford, GM, Volkswagen and Citroen. The auto industry is facing heavy losses, and the steel industry is not optimistic.

According to China Metallurgical News, some foreign steel and mining companies will temporarily suspend production and shut down. It includes 7 internationally renowned steel companies including Italian stainless steel longs producer Valbruna, South Korea’s POSCO and ArcelorMittal Ukraine’s KryvyiRih.

At present, China’s domestic steel demand is picking up but exports still face challenges. According to the data of the General Administration of Customs of China, from January to February 2020, China’s steel exports were 7.811million tons, a year-on-year decrease of 27%.